Type: Series 2009 S-3 A1/AA-

Amount: $650,000,000

Type: Series 2008 C-E Aa3/AA-

Amount: $689,815,000

CREDIT MARKETS

Treasuries:
Treasury prices headed higher Friday, led by gains in short-term debt, after the Labor Department said the U.S. economy lost 524,000 jobs in December while the unemployment rate rose to the highest since 1993. The number of jobs lost in 2008 to 2.589 million, the most since 1945. Yields on five-year Treasuries dropped the most this year, during a week when the government sold $46 billion of three and 10 year notes. Declines in U.S. stocks also spurred safe-haven buying, leading investors toward government debt. Longer-dated maturities have also been under pressure as investors follow the Federal Reserve in buying mortgage-backed securities. U.S. corporations sold $41 billion in debt this week, the most in almost eight months, as companies took advantage of investor demand to raise cash in a weakening economy. The economic calendar has PPI and CPI next week.

Municipals:
New York and Washington states led borrowers last week, who sold $4.5 billion of debt, feeding demand for higher-yielding alternatives to U.S. Treasuries with the most municipal bond offerings in four weeks, data compiled by Bloomberg show. The Bond Buyer 20, a weekly index of yields on benchmark 20-year general obligation securities, slid to 5.02 percent. Individual, or retail, holders and mutual funds reinvested Jan. 1 bond payments as Obama said the federal government would help states “avoid harmful budget cuts “historically high” relative yields and “attractive price appreciation potential. ESDC was very pleased with the level of participation from mutual funds. The secondary market was fairly light. I was in touch with NYS EFC 5% 6/33 ata 99-99.375. I was posted on NYC 5% 6/21 @ 4.65, FL St BOE 4.5% 6/25 @ 4.78.
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Commentary/New Issues

Corporate:
Nothing

ABS:
Nothing

Agency:
Nothing

New Issues larger than $250mm. The fixed income offerings mentioned above are for informational purposes only. Toussaint Capital Partners, LLC, member NASD/SIPC, and/or its affiliates may be a participant in the offerin mentioned and therefore offerings will be subject to availability.
All statistical data is sourced from Bloomberg Financial Markets

CREDIT MARKETS

Treasuries:
Treasuries held onto gains Thursday, pushing yields lower, as investors focused on a report showing continuing claims for unemployment benefits in the latest week rose to the highest level since November 1982. The Treasury Department sold the 10-year notes to yield 2.419 percent. The sale is a second reopening of the quarterly issue, meaning the security will carry the same coupon and maturity as the notes issued in November. The government has now sold $52 billion of the security, which matures in November 2018, a record amount for a single maturity. The total number of people receiving unemployment benefits rose to 4.6 million in the week ended December 27th. The non-farm payroll report will show that the U.S. lost jobs for a 12th straight month in December. Obama warned that without immediate steps by the government to revive the economy, family incomes will drop and the unemployment rate could reach “double digits.” The economic calendar tomorrow is focused on the unemployment rate and the nonfarm payrolls. It could be a rough ride.

Municipals:
New York state completed the week’s largest U.S. municipal offering a day earlier than planned as a rally in tax-exempt bonds provided the lowest long-term yields since late August. Empire State Development Corp. sold $1 billion of revenue bonds, including tax-exempt debt due in 2028 and backed by New York personal-income tax revenue at 5.1 percent, compared with 5.16 percent at a similar sale
in November and 4.6 percent in August. Investors should consider buying municipal bonds, inflation protected Treasury notes and certain investment-grade corporate debt to take advantage of current and
potential government actions. The average yield on top-rated general obligation bonds due in 30 years fell six basis points, or 0.06 percentage point, to 5.32 percent today, the lowest since late September.

The final read on MMD was 2010: yields were unchanged; 2011-2017: yields were lower by 8bp; 2018: 9 yields were lower by bp; 2019-2023: yields were lower by 10bp; 2024-2026: yields were lower by 9bp; 2027: yields were lower by 8bp; 2028: yields were lower by 7bp; 2029-2038: yields were lower by 6bp;
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Commentary/New Issues

Corporate:
$600 MM, Progress Energy, 5.30%, 1/15/19, A2/A-, +285bp
$1.0 BLN, Walgreen, 5.25%, 1/15/19, A2/A+, +287.5bp

ABS:
Nothing

Agency:
$6.0 BLN, Fannie Mae, 2.00%, 1/9/12, +83bp

New Issues larger than $250mm. The fixed income offerings mentioned above are for informational purposes only. Toussaint Capital Partners, LLC, member NASD/SIPC, and/or its affiliates may be a participant in the offerin mentioned and therefore offerings will be subject to availability.
All statistical data is sourced from Bloomberg Financial Markets

CREDIT MARKETS
Treasuries:
Treasury prices fell Wednesday, pushing the yield on 10-year notes higher for a fifth consecutive session, as bond traders digested data that showed dramatic private-sector job losses last month as well as a Congressional Budget Office forecast of a much wider budget deficit in store for the federal government. The Treasury Department auctioned a record $30 billion in 3-year notes just after the nonpartisan agency said the government will run a $1.2 trillion deficit for fiscal 2009, up from $455 billion in the fiscal year ended in September. The three year note sale drew a yield of 1.20 percent, the lowest on record. The bid to cover ratio was 2.21, compared with an average ratio of 2.41 at the past 10 auctions. Indirect bidders bought 28 percent of the notes, compared with an average of 27.6 percent at the past sales. Treasuries had a muted reaction to an ADP Employment Services report that said private companies cut 693,000 jobs in December — nearly 50% more than some economists had predicted. The 2 to 10 year yield curve was little changed from yesterday at 1.67 percentage points after widening by 42 basis points from 1.25 percentage points on December 26th.
Municipals:
U.S. municipal bonds prices rose allowing Washington state and other issuers including California and Empire Development Corp to cut yields on their bond offerings. Yields on top-rated general obligation bonds due in 10 years fell eight basis points to 3.77 percent. The 30-year tax-exempt yield dropped five basis points to 5.38 percent, matching the level last seen Nov. 20. The benchmark taxable 10-year Treasury note was higher in yield today by about three basis points at 2.48 percent. Regional bond dealers said it supports President-elect Barack Obama’s proposal to provide a federal backstop for the municipal bond market to free up credit for state and municipal borrowers. Under the proposal, included Federal Reserve and Treasury Department would set up a system to guarantee municipal debt, similar to one for commercial paper. The secondary market was fairly active. I was in touch with MTA 5% 8/19 ata 5.50-5.45, dorms 3.65% ata 99.25-99.50. I was posted on NV 5% 12/11 @ 2.03, NYS Thrwy 5% 4/15 @ 3.00. The read on the MMD was 2010: yields were unchanged; 2011-2012: yields were lowered by 3-6bp; 2013-2022: yields were lowered by 6-9bp; 2023-2029: yields were lowered by 5-8bp; 2030-2038: yields were lowered by 3-6bp.
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Commentary/New Issues

Corporate:
Nothing

ABS:
Nothing

Agency:
Nothing

New Issues larger than $250mm. The fixed income offerings mentioned above are for informational purposes only. Toussaint Capital Partners, LLC, member NASD/SIPC, and/or its affiliates may be a participant in the offerin mentioned and therefore offerings will be subject to availability.
All statistical data is sourced from Bloomberg Financial Markets

CREDIT MARKETS
Treasuries:
Treasury prices declined Tuesday, sending 10-year note yields to the highest levels seen in a month, paring losses after the government’s first note auction of the week. Investors also focused on minutes released Tuesday afternoon from the Federal Reserve’s historic interest-rate meeting last month. Policymakers saw increasing risks of depression and deflation as they grappled with employing new tools to stabilize the economy. In earlier trading, Treasuries stayed lower after data showed further weakness in the services, housing and factory segments of the economy. The Institute for Supply Management’s non-manufacturing index made an unexpected modest improvement, though the reading indicated the industry is still contracting. The index rose to 40.6 in December, off from November’s 37.3. The Treasury Department sold $8 billion in 10-year Treasury Inflation Protected Securities, to yield 2.245 percent. Investor demand was strong, with $2.48 offered for every dollar available, the highest since at least 2002. Economic calendar has ADP employment has the highlight for tomorrow.
Municipals:
California began a $350 million sale of bonds backed by utility fees to convert variable-rate debt to fix rate. Also, Empire State Development Corp priced its $1B offering today which consist of $200M taxable bonds with maturities out to 2018. Municipal bonds may be tough to sustain as new offerings build after a holiday lull. Investors and borrowers looking to sell bonds “should act quickly before current pricing strength is reasonably diluted by supply,” Fabian wrote in a report yesterday. Municipal borrowers plan to offer more than $3 billion of fixed-rate bonds this week. Yields on top-rated 10-year general obligation bonds fell four basis points, or 0.04 percentage point, to 3.85 percent. Secondary market activity was relatively tame. I was in touch with MTA 5% 11/30 at 5.70-5.68, Dorms 5% 7/26 at 5.35-5.27. I was posted on San Mateo 4% 7/17 @ 3.80. We didn’t receive the final MMD.
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Commentary/New Issues

Corporate:
$4.0 BLN, GE Capital Corp, 6.875%, 1/10/39, Aaa/AAA, +400bp
$1.20 BLN, Devon Energy, Baa1/BBB+, 2 part $500 MM, 5.625%, 1/15/14, +400bp; $700 MM, 6.30%, 1/15/19, +385bp
$500 MM, CenterPoint Energy, 7.00%, 3/1/14, Baa2/BBB+, +528.6bp

ABS:
Nothing

Agency:
$6.5 BLN, Freddie Mac, 2 part $3.0 BLN, 1.50%, 1/7/11, +77bp; $3.5 BLN, 2.50%, 1/7/14, +95bp
$277 MM, FFCB, 3.05%, 1/13/14

New Issues larger than $250mm. The fixed income offerings mentioned above are for informational purposes only. Toussaint Capital Partners, LLC, member NASD/SIPC, and/or its affiliates may be a participant in the offerin mentioned and therefore offerings will be subject to availability.
All statistical data is sourced from Bloomberg Financial Markets

CREDIT MARKETS
Treasuries:
Short-term Treasuries gained Monday, pushing yields down after the Federal Reserve said it had begun buying mortgage-backed securities. Gains were limited and longer-term yields rose, however, due to concern about increasing government-debt issuance starting with $166 billion this week. The Treasury Department will sell $30 billion in 3-year notes on Wednesday. The government will also auction $16 billion in 10-year notes on Thursday, more than anticipated. The sale will be a second reopening of the quarterly issue, meaning the security will carry the same yield and maturity as the notes issued in November. The Fed’s New York branch said Monday it has begun purchasing fixed-rate mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae. The purchases follow an announcement made in November that the Fed would buy up to $500 million in mortgage-backed debt from the major government-sponsored agencies to support the housing market. The curve was swung well steeper with the 2-10 year yield spread tagging 170. The economic calendar has ISM services and factory orders with the FOMC minutes out .
Municipals:
New Castle County, Delaware, led borrowers in the U.S. municipal market with $107 million of top-rated bonds today to fund sewer and library improvements and refinance decade-old debt, as benchmark 10-
year yields fell to the lowest in more than three months. Yields on debt due in 10 years to 3.89 percent, the lowest since Sept. The rally may end as bond sales increase after a three-week lull and demand from institutions such as banks, funds and insurers remains tepid compared with retail, or individual, investors. State and local governments led by New York plan to offer at least $3 billion of fixed-rate bonds this week, the most in four weeks, according to data compiled by Bloomberg. New York’s Empire State Development Corp. will seek to sell as much as $1.1 billion in debt backed by income taxes. The secondary market was fairly active. I was in touch with Madison NY 5% 7/33 at 5.45-5.40, NYC 5% 4/22 at 98.50-99.00. I was posted on MTA BHAC-insured 5% 7/33 98.00, Camden Imp 5 ¾ % 1/24 @ 4.97. We didn’t receive the final read on MMD.
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Commentary/New Issues
Corporate:
$1.0 BLN, Pacificorp, A3/A-, 2 part $350 MM, 5.50%, 1/15/19, +310bp; $640 MM, 6.00%, 1/15/39, +310bp
$1.25 BLN, Weatherford Int’l, Baa1/BBB+, 2 part $1.0 BLN, 9.625%, 3/1/19, +723bp; $250 MM, 9.875%, 3/1/39, +698.2bp

ABS:
Nothing

Agency:
Nothing

New Issues larger than $250mm. The fixed income offerings mentioned above are for informational purposes only. Toussaint Capital Partners, LLC, member NASD/SIPC, and/or its affiliates may be a participant in the offerin mentioned and therefore offerings will be subject to availability.
All statistical data is sourced from Bloomberg Financial Markets

Type: Series 2009 A/B NR/AA-

Amount: $1,079,255,000

CREDIT MARKETS

Treasuries:  

Treasuries turned lower Friday, pushing yields up, as equities climbed steadily higher on the first trading day of 2009.  U.S. debt had gained earlier after a private report said manufacturing in the U.S. contracted more than predicted last month.  The Institute for Supply Management’s index of manufacturing activity declined to 32.4 percent in December, from 36.2 percent in the previous month, the fifth monthly drop and the lowest in more than 20 years.  The dollar gained for a third day against the yen after falling 19 percent against Japan’s currency in 2008.  The curve was slanted well steeper with the 2-10 year yield spread running at 154.  Next week offers up a more legitimate week for trade, with a batch of (likely bad) data on the calendar culminating in Friday’s payroll report which economists are calling near a loss of 500K.

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Commentary/New Issues 

Corporate: 
Nothing

ABS: 
Nothing

Agency: 
Nothing

New Issues larger than $250mm.   The fixed income offerings mentioned above are for informational purposes only. Toussaint Capital Partners, LLC, member NASD/SIPC, and/or its affiliates may be a participant in the offerin mentioned and therefore offerings will be subject to availability.
All statistical data is sourced from Bloomberg Financial Markets

Coupon: 2.125%
Maturity: 4/30/2012

Deal Size: $7,500,000,000

Rating: Aaa/AAA